7.1.2—Types of structure

Organisational structures include functional, divisional, matrix and flatter forms. They define reporting lines, communication and how work is grouped.

Structures trade specialisation against flexibility, local responsiveness against consistency and clear accountability against cross-functional coordination.

A firm with distinct product divisions can respond quickly to different customers, while a functional structure may share specialist expertise efficiently at smaller scale.

No structure is automatically best; fit depends on size, strategy, geography, product variety and uncertainty.